We live in a world filled with data. We’re practically swimming in it. The sheer amount of data can be quite confusing and overwhelming for management to grasp. This presents a problem because marketing analysis is one of the most important areas for data analysis to be utilized, yet most managers simply don’t understand how analytics relates to ROI. This article is going to show you several proven methods that you can use to increase your marketing ROI through analytics.
- ROI Should be Part of the Plan
There is a great deal of value found in quantifying the outcomes that you expect from investments in marketing. Learning what, when, and how to measure is the first step to achieving your marketing goals. You set this up by creating a marketing plan that includes steps for measuring ROI.
Next, you’ll want to find clarity by outlining the objectives. Look closely at historical data and find trends that apply to you. Then transform that outline into an actionable plan. Once you have a plan in writing, you can find ways to measure ROI by using analytics. For example, you can create unique URLs to place in marketing emails to track how well an email campaign is performing. You can place unique URLs on social media advertisements to see how well your social media marketing is converting.
- Avoid Vanity Metrics
Vanity metrics are a trap. For those who might not understand the term, vanity metrics are metrics that many people measure that does absolutely no good. For example, Facebook likes are a form of vanity metrics because they don’t directly affect the conversion rate of posts. These metrics might impress some people, but in reality, they mean absolutely nothing. They are not giving you any form of ROI.
Use metrics that specifically measure statistics that actually lead to the growth of your business.
Vanity metrics are a trap because they make you feel good. Who doesn’t want to have 1 million likes on Facebook? But if those 1 million likes are not leading to conversions, then they are essentially worthless.
Instead of vanity metrics, focus on engagement metrics like shares, click-through rates, and conversions. When you collect the right data, you’ll have much more leverage. Don’t waste time with vanity metrics.
- Get More Sales
This new age of information has given birth to a new kind of customer known as the Informed Buyer. Consumers are much better informed today that they have been in the past. They have access to blogs, reviews, and reviews on social media. This is actually great news for businesses because they also have access to that same information. The downside is only seen in companies that don’t know how to transform that knowledge into sales.
You should be using this data to get more sales by asking an important question: How do our marketing investments affect sales? This is a measurable metric that you should be tracking. Sales are the bottom line of all marketing plans, even those that might not directly try to sell to customers.
- Don’t be Afraid to Experiment
Experimentation provides an opportunity for you to learn new, innovative ways to accelerate the growth of your business. The problem is that so many companies are afraid of experimenting. However, you can eliminate the risks by limiting test marketing campaigns to a minimum.
Experimentation should not limit insight to just one idea either. It should provide alternatives. For the best results, use the “Test and Lear Approach.”
- Choose a control group and target it.
- Try a different action with that group.
- Record the results.
- Compare the results to your normal marketing method.